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27 January, 19:20

What is the total compound interest of a loan for $5,000 with an annual interest rate of 8 percent at the end of a two-year period?

a. 800

b. 832

c. 432

d. 400

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Answers (2)
  1. 27 January, 19:22
    0
    Fv=5000 (1+0.08) ^2=5,832

    Interest earned=5832-5000=832
  2. 27 January, 19:40
    0
    It's D because 5x8 = 40 and look at the extra zeros
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